Sun Yuchen Settles Three-Year Dispute with SEC, New Developments in U.S. Crypto Regulation
Introduction
------
On March 5, 2026 local time, the United States Securities and Exchange Commission (SEC) issued litigation notice No. 26496, submitting proposed final judgment documents regarding litigation against Justin Sun, TRON Foundation (hereinafter referred to as TRON), BitTorrent Foundation (hereinafter referred to as BitTorrent), and Rainberry, Inc., which was approved for entry by the U.S. District Court for the Southern District of New York on March 9. This cryptocurrency regulatory dispute centered on the TRX token, lasting nearly three years, has reached a resolution point. According to the proposed final judgment submitted by the SEC on March 5, 2026, Rainberry accepted a permanent injunction and $10 million in civil penalties for charges under Section 17(a)(3) of the Securities Act; the SEC simultaneously proposed to address the remaining charges against Rainberry as well as against Justin Sun